Key Takeaways:
- Nasdaq is launching a bitcoin custody service in an effort to capitalize on institutional cryptocurrency investors’ desire.
- The exchange declared that it is willing to collaborate with businesses that specialize in cryptocurrencies.
Nasdaq Inc. has launched a digital assets division in an effort to attract institutional investors, placing a significant wager on the cryptocurrency market.
Through this new endeavor, custody services for Bitcoin and Ether will be made available to institutional investors. With this step, Nasdaq, the second-largest operator of the U.S. stock exchange, will provide institutional clients in the country with access to the same services that cryptocurrency companies like Coinbase, Anchorage Digital, and BitGo offer to small financial institutions.
In collaboration with asset management Hashdex, the exchange introduced a digital assets curriculum for financial advisors in 2021. According to its release, the course aimed to “offer financial advisors with instructional and instructive information on the expansion of the digital asset ecosystem, investing concerns, legislation, taxation, and more.”
The offering, which is pending regulatory approval, complements Nasdaq’s current offerings with a view to solidifying its position in the bitcoin market.
According to Nasdaq executive Tal Cohen, the company already provides security and monitoring capabilities to cryptocurrency companies but will not shift to providing crypto exchange services for the time being.
The stock exchange also increased the scope of its anti-financial crime technology to identify and reduce the risks of fraud, money laundering, and market misuse, according to a statement released on Tuesday.
Ira Auerbach, who supervised prime broker services at Gemini, one of the top bitcoin exchanges, is in charge of the new division.
However, according to a report, Nasdaq has said that it will evaluate the possibilities based on the legal climate and competitive landscape and does not currently have any plans to operate a cryptocurrency exchange.
In order to address industry concerns related to connection, availability, and efficiency, Nasdaq Digital Assets will initially develop an enhanced custody solution that will include liquidity and execution services.
Through cutting-edge technological advancement that offers a high level of accessibility and scalability without compromising security, Nasdaq’s custody solution will combine the finest features of hot and cold crypto wallets.
The regulatory clearance of the relevant jurisdictions must be obtained before Nasdaq may make its offering.
Nasdaq has created additional capabilities and protection for the cryptocurrency ecosystem through its anti-financial crime technology in order to play a crucial part in containing the growing threat of financial crime throughout the financial landscape of digital assets.
Nasdaq has introduced a comprehensive suite of crypto-specific detection capabilities through its Verafin and Surveillance product offerings in order to effectively reduce dangers as well as provide constant monitoring of anti-money laundering, fraud prevention, and business abuse all over both traditional and digital assets, fiat and crypto, and on- and off-chain activities.
